City Union Bank Limited · NSE:CUB

City Union Bank — Investor Presentation (September 2018)

40 slides from City Union Bank's investor presentation, September 2018

  1. Slide 1: Investor Presentation September 2018

    INVESTOR PRESENTATION SEPTEMBER 2018 1

  2. Slide 2: Disclaimer

    Disclaimer No representation or warranty, express or implied is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain

  3. Slide 3: Table of contents

    Table of contents 1. Overview Page : 04 2. Performance Highlights – September 2018 Page : 09 3. Financial Performance & Business Profile Page : 13 4. Branch Network Page : 36 5. Shareholding Pattern Page : 37 6. Corporate Governance Page : 38 3

  4. Slide 4: Overview

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Overview City Union Bank Ltd, the oldest private sector bank in India, was founded on October 31, 1904 and is headquartered at Kumbakonam, Tamil Nadu

  5. Slide 5: Key milestones

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Key milestones Celebrated 110th year Foundation Day in Dec 2014 Incorporation Took over Initial Public Obtained licenses Rights issue @ Raised INR of the Bank

  6. Slide 6: A specialized banking model aligned to Target Segment – SME/MSME

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern City Union Bank – A specialized banking model aligned to Target Segment – SME/MSME • SME/MSME specialized business model focusing on large untapped SM E/ M SM

  7. Slide 7: Competitive Advantages

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Competitive Advantages • Continuous profitability and dividend payout in all 110+ years of operations Strong track record • Business growth of 20% CAGR in las

  8. Slide 8: Credit Rating

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Credit Rating ICRA has assigned “AA-” for Long Term - issuers with this rating are considered to have “High Degree of Safety” regarding timely servicing of fi

  9. Slide 9: Q2 & H1 FY 2019 Performance – A snapshot

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Q2 & H1 FY 2019 Performance – A snapshot Deposits increased by 12% from Rs.309 Bn to Rs.345 Bn Y-o-Y Advances registered a growth of 17% from Rs.254 Bn to Rs.

  10. Slide 10: Q2 FY 2019 Vs Q2 FY 2018 Performance – A snapshot

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Q2 FY 2019 Vs Q2 FY 2018 Performance – A snapshot (All figures in I N R M n) 345,340 297,850 643,190 81,639 12% 17% 14% 15% 308,816 253,888 562,704 70,939 Dep

  11. Slide 11: H1 FY 2019 Vs H1 FY 2018 Performance – A snapshot

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern H1 FY 2019 Vs H1 FY 2018 Performance – A snapshot (All figures in I N R M n) 345,340 297,850 643,190 81,639 12% 17% 14% 15% 308,816 253,888 562,704 70,939 Dep

  12. Slide 12: FY 2018 Vs FY 2017 Performance – A snapshot

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern FY 2018 Vs FY 2017 Performance – A snapshot (All figures in I N R M n) 328,526 282,386 610,912 79,567 9% 17% 13% 13% 301,157 241,125 542,282 70,390 Deposits A

  13. Slide 13: Q2 FY 19 Vs Q2 FY 18 – Performance – A snapshot

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Q2 FY 19 Vs Q2 FY 18 – Performance – A snapshot (in I N R M n) Financial Perform ance Particulars Q2 FY 2019 Q2 FY 2018 Inc / (Dec) Growth Growth % Q1 FY 2019

  14. Slide 14: Q2 FY 19 Vs Q2 FY 18 – Performance – A snapshot

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Q2 FY 19 Vs Q2 FY 18 – Performance – A snapshot (in I N R M n) Financial Perform ance Particulars Q2 FY 2019 Q2 FY 2018 INC / (DEC) Growth % Q1 FY 2019 Net In

  15. Slide 15: H1 FY 19 Vs H1 FY 18 – Performance – A snapshot

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern H1 FY 19 Vs H1 FY 18 – Performance – A snapshot (in I N R M n) Financial Perform ance Particulars H1 FY 2019 H1 FY 2018 INC / (DEC) Growth % Net Interest Inco

  16. Slide 16: FY 18 Vs FY 17 – Performance – A snapshot

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern FY 18 Vs FY 17 – Performance – A snapshot (in I N R M n) Financial Perform ance Inc / Particulars FY 2018 FY 2017 Growth Growth % (Dec) Deposits 328,526 301,1

  17. Slide 17: FY 18 Vs FY 17 – Performance – A snapshot

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern FY 18 Vs FY 17 – Performance – A snapshot (in I N R M n) Financial Perform ance Particulars FY 2018 FY 2017 INC / (DEC) Growth % Net Interest Income 14,303 11

  18. Slide 18: Q2 FY 19 Vs Q2 FY 18 – Income and Expenses – Breakup

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Q2 FY 19 Vs Q2 FY 18 – Income and Expenses – Breakup (in I N R M n) Interest Income Breakup Interest Expenses Breakup Q2 FY Q2 FY Growth Q2 FY Q2 FY Growth Pa

  19. Slide 19: H1 FY 19 Vs H1 FY 18 – Income and Expenses – Breakup

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern H1 FY 19 Vs H1 FY 18 – Income and Expenses – Breakup (in I N R M n) Interest Income Breakup Interest Expenses Breakup H1 FY H1 FY Growth H1 FY H1 FY Growth Pa

  20. Slide 20: FY 18 Vs FY 17 – Income and Expenses – Breakup

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern FY 18 Vs FY 17 – Income and Expenses – Breakup (in I N R M n) Interest Income Breakup Interest Expenses Breakup FY FY Growth FY FY Growth Particulars Particul

  21. Slide 21: Strong Deposits and Advances growth

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Strong Deposits and Advances growth (in I N R M n) Deposits Advances CAGR 11 % CAGR 15 % 3,45,340 2,82,386 2,97,850 3,28,526 3,01,157 2,41,125 2,71,581 2,12,5

  22. Slide 22: Income Growth over the years…

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Income Growth over the years… (in I N R M n) Net I nterest I ncom e Grow th Other I ncom e Grow th CAGR 17 % CAGR 17 % 14,303 5,321 4,840 11,988 4,100 4,041 9

  23. Slide 23: Key Business Indicators

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Key Business Indicators Q2 FY Q2 FY H1 FY H1 FY FY Particulars 2019 2018 2019 2018 2017-18 Cost of Deposits 6.07% 6.26% 6.11% 6.35% 6.29% Yield on Advances 10

  24. Slide 24: Key Business Ratios – Yearly trends

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Key Business Ratios – Yearly trends Net I nterest M argin R eturn on Assets 5.00% 1.65% 1.63% 1.60% 4.50% 1.60% 4.28% 4.42% 1.55% 4.00% 4.17% 1.50% 1.50% 3.81

  25. Slide 25: Cost of deposits & Yield on advances

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Cost of deposits & Yield on advances 16.00% 14.00% 13.46% 13.56% 13.49% 13.43% 13.04% 13.18% 12.83% 12.47% 12.10% 12.00% 11.46% 10.86% 10.00% 8.44% 8.37% 7.98

  26. Slide 26: Efficiency

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Efficiency Cost income ratio C A S A R a t io 42.83 23.37 24.22 23.64 41.66 20.37 40.94 19.23 40.10 38.46 31-Mar-2015 31-Mar-2016 31-Mar-2017 31-Mar-2018 30-S

  27. Slide 27: Loan Book – Products Composition

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Loan Book – Products Composition • Working capital loans yielding higher interest constitute 65% of advances • Re-pricing possible at short intervals thus red

  28. Slide 28: Loan Book – Sectoral Deployment – Position as on 30.09.2018

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Loan Book – Sectoral Deployment – Position as on 30.09.2018 (in I N R M n) Sectoral Deployment Secured & Unsecured Advances Agriculture 44,276 (15%) Amount %

  29. Slide 29: Loan Book – Advances to Major Industries

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Loan Book – Advances to Major Industries (in I N R M n) Advances to Major Industries 30th September 2018 TEXTILE a) Cotton 13,293 (4%) b) Other Textiles 17,71

  30. Slide 30: Asset Quality

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Asset Quality (in I N R M n) Gross NPA Qtm & Gross NPA % Net NPA Qtm & Net NPA % 8,566 8,479 4,978 4,748 6,820 4,083 5,120 3,232 2,328 3,358 3.03% 2.85% 2.83%

  31. Slide 31: Asset Quality Position – Movement over the years

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Asset Quality Position – Movement over the years FY FY FY FY Q2 H1 (Rs in Mn) Mar - 15 Mar - 16 Mar - 17 Mar - 18 FY 2019 FY 2019 NPA Opening balance 2,931 3,

  32. Slide 32: Disclosure on Divergence in Asset Classification and Provisioning for NPAs

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Disclosure on Divergence in Asset Classification and Provisioning for NPAs In terms of RBI circular DBR.BP.BC.No.63/21.04.018/2016-17 dated 18th April 2017, b

  33. Slide 33: RBI Dispensation

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern RBI DISPENSATION MSME Borrowers: In terms of RBI circular DBR.BP.BC.No.100/21.04.048/2017-18 dated 7th February, 2018 and DBR No.BP.BC.108/21.04.048/2017-18 d

  34. Slide 34: Restructured Accounts

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Restructured Accounts Balance outstanding as on 30.09.2018 in respect of Restructured Standard borrowers No account has been restructured during H1 FY 2019 Th

  35. Slide 35: Investments – At a Glance

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Investments – At a Glance Investm ents Breakup and Categoryw ise (in I N R M n) Particulars SEP 2018 SEP 2017 SLR Securities 78,193 71,238 Non-SLR Securities

  36. Slide 36: Strong presence in the South

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Strong presence in the South As of Sep -2018 - 607 branches. 544 branches are located in South India out of which 418 in Tamil Nadu No. of % of % of % of Stat

  37. Slide 37: A well diversified investor base

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern A well diversified investor base as of 30th Sep 2018 Ownership profile Major Institutional Shareholders Shareholders % of Holding HDFC Midcap Opportunities Fu

  38. Slide 38: Transparent 'Corporate Governance' practices

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Transparent ‘Corporate Governance’ practices Board consists of 9 Independent Directors (including 1 Women Director) and 1 Executive Director Various sub-commi

  39. Slide 39: A well experienced and strong Board

    1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern A well experienced and strong Board Shri. S. Mahalingam | B.Com (Honours), FCA Dr N. Kamakodi | B.Tech., MBA., PhD., CAIIB Independent Part-time Chairman M.D.

  40. Slide 40: City Union Bank Ltd. Investor Contact

    CITY UNION BANK LTD. INVESTOR CONTACT Regd. Office : 149, TSR Big Street, Kumbakonam – 612001, Tamilandu. Name : K. Jayaraman, DGM Admin Office : "Narayana" No.24 B, Gandhi Nagar, Kumbakonam - 612001,Tamil Nadu. Mob : +91 9344303740 Tel : 0435-2402322, 2401622, | FAX: 0435-2431746 | www.cityunionban

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